The SEC is looking at 4 proposals to help deal with the issue of short-selling.
According to Reuters: “U.S. securities regulators will consider about 4 proposals to restrict short selling, a type of investing blamed for accelerating the severe downturn in financial services stocks. Proposals the SEC will consider at its Wednesday meeting include the restoration of the “uptick rule,” which allowed short sales — a bet that a stock’s price will fall — only when the last sale price was higher than the previous price, the chief of the Securities and Exchange Commission said on Monday. “We are going to put forward about four different proposals, and one of them does include the original (uptick rule),” SEC Chairwoman Mary Schapiro told reporters on the sidelines of the Council of Institutional Investors conference. “There are different modified versions because the markets have changed a lot, even since 2007.” Schapiro said other proposals on the table include a so-called “bid test” and a “circuit breaker.”
With populist calls for a change in how to deal with short sellers, look for some legislation to get done quickly.
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